Positive Outlook For DEL
Analysts at Soleil Securities Group maintain their "buy" rating on Deltic Timber (NYSE: DEL), while raising their estimates for the company. The target price for DEL is set to $55.
According to Soleil Securities Group, Deltic Timber is highly leveraged to the anticipated improvement in the log and timber markets during 2010. DEL benefited from a marginal improvement in lumber pricing during 4Q09, the analysts say. The company is expected to benefit from lower costs and ongoing productivity improvements, the analysts add.
The analysts expect a modest recovery in the residential market during 2010 and a greater recovery during 2011. Deltic Timber is well-positioned for growth, given its strong balance sheet and limited debts, the analysts mention. Soleil Securities has raised its EPS estimate for FY09 from $0.07 to $0.21.
